Pollock, Rufus (2006): Cumulative Innovation, Sampling and the Hold-Up Problem.
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With cumulative innovation and imperfect information about the value of innovations, intellectual property rights can result in hold-up and therefore it may be better not to have them. Extending the basic cumulative innovation model to include `sampling' by second-stage firms, we find that the lower the cost of sampling, or the larger the differential between high and low value second-stage innovations, the more likely it is that a regime without intellectual property rights will be preferable. Thus, technological change which reduces the cost of encountering and trialling new `ideas' implies a reduction in the socially optimal level of rights such as patent and copyright.
|Item Type:||MPRA Paper|
|Original Title:||Cumulative Innovation, Sampling and the Hold-Up Problem|
|Keywords:||Cumulative Innovation; Hold-Up; Sampling; Intellectual Property|
|Subjects:||L - Industrial Organization > L5 - Regulation and Industrial Policy
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights
K - Law and Economics > K3 - Other Substantive Areas of Law
|Depositing User:||Rufus Pollock|
|Date Deposited:||24. Sep 2007|
|Last Modified:||13. Feb 2013 07:16|
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